(The Center Square) – The Seattle City Council on Friday afternoon unanimously approved a nearly $9 billion budget for 2026, with several city council members urging a deeper examination of which programs are effectively addressing the city’s most persistent challenges.
The $8.9 billion budget is 7% higher than the 2025 budget of $8.2 billion. Seattle faced a nearly $200 million budget deficit at one point, but was able to avoid dipping into its “rainy day fund” by extending its hiring freeze, stopping nonessential travel, and new taxes.
Seattle voters overwhelmingly approved a business and occupation tax restructuring that is expected to generate $81 million in new revenue. The council also passed a 0.1% sales tax increase authorized by the state for public safety needs.
Comments from most city council members were minimal before the final vote on Friday, as many of them made their comments on the budget before it was approved out of the Select Budget Committee on Thursday. Seattle City Councilmember and Budget Chair Dan Strauss said the 2026 budget focuses on affordability, homelessness, increasing public safety, and fiscal responsibility, all the while preparing for uncertainty in federal funding.
“This budget prepares us for the unknown that may occur through the federal government,” Strauss said at Thursday’s meeting.
The budget went through 17 committee meetings since Mayor Bruce Harrell’s proposal was first announced. In the interim, the council increased funding for affordable housing, rental assistance, and expanded discounts on utility bills, among other initiatives. Next year will see a record-high $349.5 million go toward affordable housing, supported in part by voter-approved funding for social housing, projected at $65 million.
Regarding homelessness, the budget allocates $225 million with the council adding $11.8 million to the Seattle Human Services Department to bolster the city’s emergency reserve and soften the impact of the federal funding cut on local shelter and housing programs. But some members of the council said it’s time for results.
According to Seattle City Council President Sara Nelson, there were 191 overdose deaths in permanent supportive housing in 2024 and 101 through the first nine months of 2025.
“This should be cause of concern because the City of Seattle is helping subsidize these facilities,” Nelson said. “We really do have to make sure that when we are working with our housing providers and we think that we are funding a housing-first model with wraparound services, we have to make sure that the services exist.”
Fellow Councilmember Maritza Rivera echoed that sentiment about city programs as a whole.
“As we move forward next year, it’s our responsibility to take a hard look at what we’re doing,” she said. “If we do not have outcomes that let us know we are actually making a difference, then we need to look at shifting our approach. I do not feel good saying I’m providing funding for something if it’s not actually making a positive difference in somebody’s life.”
The budget – which will need to be signed by Harrell before it’s official – comes as Seattle prepares for a political transition, with Mayor-elect Katie Wilson set to oversee a city expanding social services amid questions about their effectiveness. Her administration will begin under the shadow of a $140 million deficit in 2027, adding urgency for clear performance measures across all departments.
